Facebook to rival iTunes?

According to rumors doing the rounds, Facebook is currently working on a project that would rival Apple Inc.'s successful iTunes multimedia download store. According to AllFacebook blogger Nick O'Neill, the company is in the process of looking for an executive to head the division and is already in talks with record companies.

It's unclear whether such a service would be for just music downloads or also for movie and video downloads. Recent developments with DRM, combined with disputes between Apple and content providers, has hit iTunes pretty hard, with some companies like NBC Universal walking away from the service completely.

The fact that many record company executives are displeased with Apple's business model for iTunes is not much of a secret either. Facebook could serve as a good rival for iTunes, and could certainly use the new business venture to ensure future profitability. Industry experts have agreed that Facebook needs to come up with innovative ways to make money for its future financial health.